Financial benefits in the UK used to be a promise of a steady pension and the odd bonus. Today, this just won’t cut the overpriced mustard.
UK employees are facing a torrent of financial pressures, from the well-documented cost-of-living crisis to the underestimated pension gloom. The struggle to stay on top of budgets and savings in this kind of environment is quickly making financial worries one of the biggest challenges among employees.
Underlining the scale of these worries, Caroline Drake, chief people officer at payroll and HR company, Zellis, says: “77% of employees in the UK and Ireland have experienced financial stress over the past year.” Research suggests these employees are also five times more likely to take time off work (REBA), and more than half say money worries have negatively impacted their productivity at work (Zellis).
The situation sounds despairing and may have you yearning for simpler days of trading crops and fighting Vikings. But hold your plough horses, because here lies a huge opportunity for companies to appeal to the growing demands for greater financial support.
In a recent survey of 2,502 employees across a range of sectors in the UK and Ireland, 78% said they would quit their job in favour of an employer who prioritises financial wellbeing.
Instead of losing your best employees to financial stress, companies have the chance to retain and engage them by better supporting their financial wellbeing.
Companies are making the change
REBA’s Financial Wellbeing Research 2023 highlights the growing attention workplaces are placing on financial wellbeing. In the next two years:
- 53% will increase financial wellbeing spend
- 62% will offer financial education from an independent provider
- 42% will offer employee share plans
Workplaces are responding to employee demand for greater financial support, and education is becoming a key element of their approach.
By empowering employees with financial literacy, organisations boost awareness of the financial wellbeing benefits available to them, how to access them, and how to use them to their advantage.
Good for employee and employer
The reason financial wellbeing has gone from a “nice to have” to a “must have”, lies in the fact that it’s not just the employee who benefits.
A growing body of research credits financial wellbeing programs with significantly improving company performance, thanks to their impact on employee productivity and motivation.
The International Foundation of Employee Benefits Plans finds that companies that implement financial wellness programs report a three-fold increase in employee productivity compared to those without. Plus, 81% of employees who receive financial education say they feel more loyal to their employer.
Yes, employers too are receiving a slice of this seemingly bottomless pie. By developing financial wellbeing among employees, they are simultaneously driving better long-term performance and engagement. When it comes to financial wellbeing, workplaces are quickly recognising that the proof really is in the pudding.
Want to future-proof your workplace?
Get in touch with MicroFact at contact@microfact.co.uk to explore how our financial engagement tools can boost your team’s wellbeing.
